Real Estate Leasing

The following aspects must be taken into consideration for the realisation of the leasing property:

type of property

The leasing property is always property, a piece of land within the meaning of the law (ZGB 655):

• a piece of property
• an independent and lasting right to use entered in the land registry
• a mine
• a co-ownership share in a piece of property

Construction as integral component of the land

A leasing property inherently and commonly includes:

• Land and construction 

Based on the property law accession principle, every fixed construction shares the property law providence of the main substance, namely the building site or, simply, land.

An exception to the accession principle is found with pieces of land where the building rights (right to build and the right to allow the construction to continue in existence) when the ownership of the land and the ownership of the construction can be discrete or separated. If they are independent (transferable) and lasting (minimum of 30 years and maximum of 100 years), building rights can be entered into the land registry as property and encumbered with limited real property rights (easements, mortgages or liens, encumbrances) as well as with prior notice of personal rights.

Type of usage

Leasing properties, according to their types of usage, include:

• office buildings
• administration buildings
• commercial properties
• production facilities
• warehouse buildings and logistics facilities
• industrial real estate
• sports facilities including stadiums
• hotel real estate
• tourism facilities
• operator properties and management properties
• agricultural buildings

Operator properties or management properties

Under leasing properties, which are built to the specifications of a specific user or special function, it is not rare to find:

• management properties
  • proprietor-used, operations (special) property
  • application examples
    • sports stadiums
    • hotel properties
    • recreational facilities
    • retirement or old-age facilities
    • care facilities
    • hospitals
    • among other things
• operator properties
  • proprietor-used special property
  • application examples
    • sports stadiums
    • commercial real estate
    • shopping centres
    • hospitals
    • care facilities
    • retirement or old-age facilities
    • among other things

 Commonalities exist for

• single user (proprietor, or rather owner or operator)
• profitability depends on single user
• lacking or limited third-party usage access
• requirement to set aside reserves